Ministry insists on environment tax hike on fuels

Ministry insists on environment tax hike on fuels Minh Tam A vehicle is reﬁlled at a gas station in HCMC. Despite a public uproar, the Ministry of Finance has shown no signs of backing off its plan to hike the environmental protection tax on fuels – PHOTO: TL HCMC – Despite a public uproar, the Ministry of Finance has shown no signs of backing off its plan to hike the environmental protection tax on fuels by VND3,000-8,000 a liter, double or triple the current level. The planned tax hike is considered based on multiple factors, the ministry said in a report on input it has got from ministries, local authorities, organizations and individuals for the draft Law on Environmental Protection Tax. The tax hike is inevitable as Vietnam is gradually cutting import tariffs in line with international commitments, the ministry said in the report published on its website last Friday. The rising consumption of fossil fuels is impacting on the environment, so new policy initiatives are needed to shift to renewable energy. Fuel prices and environmental taxes on fuels in Vietnam are lower than other countries. Therefore, a tax spike will help the country respond to global economic volatility effectively, especially oil price changes. According to the ministry, the new tax bracket will be applied for a long term. After the tax is increased, the ministry will assess its impact on the economy, enterprises, fuel retailers and the republic, and ensure to maintain the competiveness of domestic firms. The ministry…